Eleanor Poindexter, Week 6 Company Analysis, MBA 723 E3WW, Professor Terrell
To: Professor Terrell
Fr: Eleanor Poindexter
Re: Knowledge Economy
Dt: 06/22/2013
Business Brief
This paper will discuss the differences in strategy between business in a local country, doing business on a global scale, knowledge economy, and intellectual property.
Opening
Pros:
• Intellectual property rights are not only beneficial to individual nations in the international community, but that a free market necessitates careful regulation and enforcement of international intellectual property rights in order to foster growth and provide a fair international market with open and mutually beneficial international trade.
• Poorly enforced or loose regulation of international property rights can also reduce the beneficial effects of a free market.
• Firms that have operated internationally tend to develop at a much quicker pace than those operating locally
• Operating internationally may enable the firm to source raw materials or labor at lower prices Increased quality and efficiency: Exposure to foreign competition will encourage increased efficiency. Doing business in the international market allows firms to improve the quality of their product in order to gain a competitive advantage.
• International business presents firms with new market opportunities. These new markets provide more opportunities for expansion, growth, and income. A bigger market means more customers, increased revenue, a larger profit margin, and allows the business to realize economies of scale.
• As the firm diversifies its market, it becomes less vulnerable to changes in local demand. This reduces wild swings in a company's sales and profits.
Cons:
• Although it can be argued that international protection for intellectual property rights would be beneficial for the global economy, not all examples lead to this conclusion.
• An intellectual property right not only creates increased levels of exploitation and polarization in of the corresponding relationships, but it also creates a moral hazard that discourages increased efficiency and productivity.
• Despite claims that intellectual property rights are necessary for the success of the free market, that freedom from intellectual property rights does not cause negative affects on the global economy or domestic markets.
• There are increased operating expenses including the establishment of facilities abroad, the hiring of additional staff, traveling of personnel, specialized transport networks, information and communication technology.
• The firm may need to conform to new standards. This may require changes such as in the production process, inputs and packaging, incurring additional costs.
• International trade may cause delays in payments, adversely affecting the firm's cash flow.
• International business usually requires changes to the firms operating structure. Training or retraining of management may be necessary to facilitate restructuring.
Analysis
Knowledge Economy is an economy that is driven by research, ideas, innovations, and technical skills to generate high impact economic benefits and high paying jobs. Knowledge is a product, tool, and is an asset that can be used to create the next generation of technology and financial increase. This economy can advance and succeed directly from relationships developed among business, education, and government. A strong, sustainable knowledge economy can stimulate growth for both individuals and organizations in a community. Regions that cultivate impactful knowledge economies are able to sell goods and services at a higher profit margin than others
Conclusion
It is often more expensive for the American consumer to buy African agricultural goods than to buy European produce, even though the actual cost of the African produce is lower when it leaves the continent. The price is increased by import
Importance of Knowledge Economy Introduction Continuous learning is an absolute necessity! Knowledge is Expanding at An Unprecedented Rate It is changing the nature of society and all aspects of life Knowledge information began to gain in pace with the Renaissance and the Industrial Revolution We are now living in a completely new world that is generating new modes of perception, communication, and relationship. World with new rules of economics and social life We are living in a knowledge economy…
Intellectual CApital and the boundaryless career I. Executive Summary: For the past several decades, due to myriad factors, the economy has transformed in such a way that competitive advantage and, in turn, the sustainability of that advantage is increasingly derived from intellectual capital rather than from the control or deployment of physical and financial assets. It has become difficult for firms to gauge how their human capital translates to intellectual capital. Moreover, the global…
In sufficient economy, we include 5 content thus conceptual framework which is the philosophy that teach us to live in the way that it should be. Attribute said that sufficient economy can be adapt in all racist by using moderate practice and it will be improving step by step. Definition should have 3 attribute which consist of moderation, reasonableness, and self-immunity. Apart from these three components, two other conditions are based on knowledge and morality. Last one is practices and the results…
ratios. For example, “old economy” businesses with large amounts of tangible assets may have higher leverage ratios. Service or trading firms may have large amounts of intangible assets such as knowledge assets or a large and loyal customer base, and, hence, have low leverage ratios because “growth options” can evaporate. On the other hand, companies within the same industry tend to exhibit similar financial characteristics, as measured by financial ratios. With some knowledge of the different operating…
lack of knowledge? In this paper, I will try to illustrate that the gap is a knowledge gap; by looking firstly at a brief history of how knowledge spread followed by the World Bank indexes analysis. Historical inputs The invention of the wheel, around 3500 BC, led to mobility. Being more mobile meant that people could move their goods around more easily which led to an increase in the movement of people and hence the spread of arts, cultures, customs, religions and knowledge. New knowledge had to…
American Education Chapter 4 The Economic Goals of Schooling The Economic Goals of Schooling: Human Capitol Global Economy Preschool Human Capitol Theory Human Capitol Theory This is the idea of educating for economic growth and competition. Horace Mann proposed 2 major economic objectives, and one of those we now call human capitol. Human Capitol contends that investment in education will improve the quality of workers and, consequently, increases the wealth of the community.…
produce and distribute goods and services to its citizens. Answer: TRUE Explanation: Economics is the study of how a society uses its scarce resources to produce and distribute goods and services to its citizens. Diff: 1 AACSB: Application of knowledge Chapter LO: 1 Course LO: Compare and contrast different economic systems Classification: Concept 2) Macroeconomics studies economic behavior among consumers, businesses, and industries that collectively determine the quantity of goods and services…
one week before you start your lab session. Labs (cont’d) Microsoft Office is a productivity suite. It is supposed to increase your productivity. You should learn to use these applications effectively. It is easy to overestimate your knowledge about these applications because they are What-YouSee-Is-What-You-Get (WYSIWYG) software Quite a number of students failed their lab assessment last year… Demonstration 13 See supp1.doc and supp2.doc from the course website Assessments…
advancements in these areas and impact the world through these contributions because of their trade and economy, their emphasis on knowledge and scholarship, and their commitment to the Islamic religion. The Muslims were able to make significant and lasting contributions to the world because of their trade and economy. Muslims, or the Umayyads as they were known, lived in a dry, desert area. Agriculture was not a major part of their economy because of the geographical conditions of the desert. Trade was their main priority…
Chapter 13: Politics and Economic Life Central terms Government Politics Economy In actuality, these three are inextricably linked. Power and authority Power is the ability to impose one’s beliefs or interests upon others, even in the face of resistance. Authority is the legitimate use of power. Characteristics of a state Organized government Territory Legal system Military force Nation-state Modern form of state. Has similar characteristics as a state,…